Amazon Boosts Efforts to Attract K-Beauty Brands
Amazon, the world's largest e-commerce company, is ramping up efforts to attract K-Beauty brands. For the first time, Amazon is holding a large-scale conference targeting domestic beauty companies, aiming to expand the global reach of Korean cosmetics brands.On June 27, Amazon will host the 'Amazon K-Beauty Conference' at the Intercontinental Seoul COEX Hotel in Seoul's Samseong-dong district. The event, held in collaboration with Korean ODM company Kolmar, will see over 1,500 participants from the domestic beauty and distribution industries, both online and offline. This marks Amazon's first large-scale conference focused on a single industry, with notable attendees including Jim Yang, VP of Amazon Global Selling APAC, Yuki Suita, Head of Amazon Japan Consumer Goods & Beauty, and Steven To, Head of Amazon Advertising APAC Growth Marketing.
The significant push by Amazon to host this large event stems from the rapid growth of K-Beauty in the US and global markets. According to the Korea Cosmetic Association, exports of cosmetics to the US nearly doubled from $640.52 million in 2020 to $1.214 billion last year, and have surged 54.5% year-on-year as of March this year, totaling $365.96 million.
Amazon is already seeing success with K-Beauty brands, particularly small and emerging companies. AmorePacific's acquisition, COSRX, ranked second in facial treatments, masks, and skincare sets, while Anua, Tirtir, and Mediheal dominate the top ranks in various categories. Tirtir leads in facial makeup.
Ahead of the conference, Amazon plans to announce initiatives to support the global business of K-Beauty brands, detailing entry procedures and compliance requirements. Experts from Bain & Company, Meta, and TikTok will present marketing and branding strategies, with beauty influencers like Ava and successful K-Beauty brands like Beauty of Joseon and Soongun Editor sharing their experiences.
This conference is seen as a crucial opportunity to identify strategies for the global expansion of K-Beauty. Park Hyun-jin, a researcher at Shinhan Investment Corp, noted, "K-Beauty's offline presence in the US is still weak, so the potential for expansion in the market is enormous."
Since signing an MOU in June last year to support beauty tech startups, MSS and L'Oréal have maintained a cooperative relationship. This year, they will advance their efforts through the 'Big Bang' program, designed to foster digital and innovative technology startups applicable to beauty.
The 'Big Bang' program is part of L'Oréal's open innovation initiative in North Asia, with L'Oréal Korea collaborating with MSS for pilot operations. This program aims to discover and support startups in the digital and research innovation fields, providing mentorship, consulting, marketing, and networking support from L'Oréal.
In the digital sector, the program seeks startups with solutions for generating ad videos/images, automating data-driven ad campaigns, offering content search API services, and developing conversational text AI. In research innovation, it targets startups with new ingredients or formulations applicable to skin or hair, and technologies from medical platforms or procedures that can be applied to beauty.
Selected startups will have opportunities to collaborate with L'Oréal and receive up to 200 million won (approximately $180,000) in commercialization funds from MSS. This year, MSS is partnering with 11 global companies, including Google and OpenAI, to support 305 promising startups, with L'Oréal becoming the 12th partner.
Im Jung-wook, Director of the Startup and Venture Innovation Office at MSS, stated, "Korean beauty startups are leading the global K-Beauty wave. The collaboration with L'Oréal is expected to create significant synergies."
This program is anticipated to provide crucial opportunities for domestic startups to enter the global market and gain greater recognition for their innovative beauty technologies.
The investigation revealed that 7 out of 40 color cosmetics (17.5%) including eyeshadow, blush, and lip gloss contained harmful substances. Notably, an eyeshadow palette sold on AliExpress exceeded the lead content limit by 65 times, with chromium also detected. Chromium is a carcinogen, and red tar has been linked to growth disorders and liver function abnormalities in animal studies.
In addition, 11 out of 28 children's water toys (39.3%) contained harmful substances such as phthalates, heavy metals, and preservatives. A transparent swimming tube sold on Temu exceeded the phthalate limit by 295 times and the cadmium limit by 3.2 times. Phthalates are endocrine disruptors that can affect reproductive functions, causing sperm count reduction or infertility, and can irritate the eyes and skin.
Moreover, 9 out of 10 motorcycle helmets sold on Ali and Qoo10 (90%) did not meet domestic impact absorption standards, with 8 of them failing to absorb any impact, posing a high risk of injury in accidents.
Based on these findings, KCA has taken steps to block the sale of these harmful products on AliExpress and Temu, and Qoo10 has agreed to cease sales of the identified products. Consumers are advised to verify the safety of products when purchasing from overseas platforms.
Customized cosmetics are products that have a basic base to which ingredients specified by the MFDS are added or mixed, considering individual skin characteristics and preferences. Given the wide variety of potential products, sellers are required to report ingredient lists to the MFDS once a year.
Under the new regulations, if the base is the same, sellers can now report by product group even if the product names differ. This streamlined approach will apply to ingredient list reports for products sold in 2024, with submissions due by February 2025 through the Korea Cosmetic Association.
The MFDS plans to update the 'Customized Cosmetics Ingredient Reporting Manual' and provide guidance to ensure the smooth implementation of these changes. The MFDS continues to strive for thorough safety management while actively pursuing regulatory innovation based on industry feedback.
The significant push by Amazon to host this large event stems from the rapid growth of K-Beauty in the US and global markets. According to the Korea Cosmetic Association, exports of cosmetics to the US nearly doubled from $640.52 million in 2020 to $1.214 billion last year, and have surged 54.5% year-on-year as of March this year, totaling $365.96 million.
Amazon is already seeing success with K-Beauty brands, particularly small and emerging companies. AmorePacific's acquisition, COSRX, ranked second in facial treatments, masks, and skincare sets, while Anua, Tirtir, and Mediheal dominate the top ranks in various categories. Tirtir leads in facial makeup.
Ahead of the conference, Amazon plans to announce initiatives to support the global business of K-Beauty brands, detailing entry procedures and compliance requirements. Experts from Bain & Company, Meta, and TikTok will present marketing and branding strategies, with beauty influencers like Ava and successful K-Beauty brands like Beauty of Joseon and Soongun Editor sharing their experiences.
This conference is seen as a crucial opportunity to identify strategies for the global expansion of K-Beauty. Park Hyun-jin, a researcher at Shinhan Investment Corp, noted, "K-Beauty's offline presence in the US is still weak, so the potential for expansion in the market is enormous."
South Korea's Ministry of SMEs and Startups Teams Up with L'Oréal to Foster Beauty Tech Startups
South Korea's Ministry of SMEs and Startups (MSS) and global beauty giant L'Oréal have launched a program to nurture beauty tech startups. Starting June 12, applications will be open for this program, offering a platform for startups with innovative beauty technologies to enter the global market.Since signing an MOU in June last year to support beauty tech startups, MSS and L'Oréal have maintained a cooperative relationship. This year, they will advance their efforts through the 'Big Bang' program, designed to foster digital and innovative technology startups applicable to beauty.
The 'Big Bang' program is part of L'Oréal's open innovation initiative in North Asia, with L'Oréal Korea collaborating with MSS for pilot operations. This program aims to discover and support startups in the digital and research innovation fields, providing mentorship, consulting, marketing, and networking support from L'Oréal.
In the digital sector, the program seeks startups with solutions for generating ad videos/images, automating data-driven ad campaigns, offering content search API services, and developing conversational text AI. In research innovation, it targets startups with new ingredients or formulations applicable to skin or hair, and technologies from medical platforms or procedures that can be applied to beauty.
Selected startups will have opportunities to collaborate with L'Oréal and receive up to 200 million won (approximately $180,000) in commercialization funds from MSS. This year, MSS is partnering with 11 global companies, including Google and OpenAI, to support 305 promising startups, with L'Oréal becoming the 12th partner.
Im Jung-wook, Director of the Startup and Venture Innovation Office at MSS, stated, "Korean beauty startups are leading the global K-Beauty wave. The collaboration with L'Oréal is expected to create significant synergies."
This program is anticipated to provide crucial opportunities for domestic startups to enter the global market and gain greater recognition for their innovative beauty technologies.
Harmful Substances Found in Overseas Direct Purchase Cosmetics and Water Toys
Harmful substances such as heavy metals and tar have been found in some cosmetics and children's water toys sold on international direct purchase platforms AliExpress, Temu, and Qoo10. The Korea Consumer Agency (KCA) reported on June 14 that 27 out of 88 products (30.7%) sold on these platforms did not meet domestic safety standards.The investigation revealed that 7 out of 40 color cosmetics (17.5%) including eyeshadow, blush, and lip gloss contained harmful substances. Notably, an eyeshadow palette sold on AliExpress exceeded the lead content limit by 65 times, with chromium also detected. Chromium is a carcinogen, and red tar has been linked to growth disorders and liver function abnormalities in animal studies.
In addition, 11 out of 28 children's water toys (39.3%) contained harmful substances such as phthalates, heavy metals, and preservatives. A transparent swimming tube sold on Temu exceeded the phthalate limit by 295 times and the cadmium limit by 3.2 times. Phthalates are endocrine disruptors that can affect reproductive functions, causing sperm count reduction or infertility, and can irritate the eyes and skin.
Moreover, 9 out of 10 motorcycle helmets sold on Ali and Qoo10 (90%) did not meet domestic impact absorption standards, with 8 of them failing to absorb any impact, posing a high risk of injury in accidents.
Based on these findings, KCA has taken steps to block the sale of these harmful products on AliExpress and Temu, and Qoo10 has agreed to cease sales of the identified products. Consumers are advised to verify the safety of products when purchasing from overseas platforms.
Streamlined Reporting for Customized Cosmetics Ingredients
South Korea's Ministry of Food and Drug Safety (MFDS) announced a revision to the regulations, allowing customized cosmetics sellers to report ingredient lists by product group instead of individual products. This change, effective from June 14, aims to simplify the reporting process for businesses.Customized cosmetics are products that have a basic base to which ingredients specified by the MFDS are added or mixed, considering individual skin characteristics and preferences. Given the wide variety of potential products, sellers are required to report ingredient lists to the MFDS once a year.
Under the new regulations, if the base is the same, sellers can now report by product group even if the product names differ. This streamlined approach will apply to ingredient list reports for products sold in 2024, with submissions due by February 2025 through the Korea Cosmetic Association.
The MFDS plans to update the 'Customized Cosmetics Ingredient Reporting Manual' and provide guidance to ensure the smooth implementation of these changes. The MFDS continues to strive for thorough safety management while actively pursuing regulatory innovation based on industry feedback.
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